In the context of business strategy, what does CRM primarily aim to improve?

Customer Relationship Management (CRM) primarily aims to improve customer satisfaction and loyalty by effectively managing interactions between a business and its customers. CRM systems collect and analyze customer data, facilitating better understanding of customer preferences and behaviors. This helps businesses tailor their services and products to meet customer needs, resulting in a more positive experience.

Improving customer satisfaction directly enhances customer loyalty, as satisfied customers are more likely to return for repeat business and to recommend the company to others. This long-term relationship building is a central theme of CRM initiatives, distinguishing it from other business strategies that might focus more on financial aspects, employee performance, or competitive positioning.